Work and Pensions Secretary John Hutton is remaining tight-lipped about possible Government moves to amend pension tax relief.At an Investment management Association and Social Market Foundation fringe meeting at the Labour conference last week, Hutton responded to questions on scrapping tax credits on dividends for pension funds and SMF calls for an overhaul of tax incentives, saying it was not his area. He said: “I do not think talking about tax relief is my territory and I am not in a position to comment widely on the role of tax incentives.” SMF director Anne Ross-iter said the Government should be considering the post-Turner world and foc-using on changing a system which is “potentially regressive and favouring the better off”. Rossiter said the SMF would be conducting research into the possible red-istribution of incentives which will also look at how short-term savings vehicles can contribute to long-term saving. She said that although tax incentives for Isas encourage people to save in the vehicle, it is unclear how the incentives affect the amount that is saved overall. Hutton rejected suggestions that scrapping tax credits on dividends for pension funds had been largely responsible for current pension problems, saying the Tory description of a “£5bn raid on pensions is nothing but propaganda”. This view was backed up by IMA chief executive Richard Saunders, who said the effect was probably nearer £1bn and other factors, such as falls in equities, were far more responsible. Hutton also looked to play down the danger of levelling down of existing schemes caused by the NPSS, saying the Turner-style rolling review will guard against this prospect. This follows calls for the Government to safeguard existing pension provision, with all defined-benefit schemes and defined-contribution schemes with equal or greater contributions probably exempt. Saunders attacked industry critics of the NPSS, saying they were keen to talk about potential damage to existing provision but they had no other answer to a future pension crisis. He said: “I challenge critics in the industry as to what they would do instead but they have no reply and, if they do, they suggest that the Government should contribute more, which would raise tax levels.”
The Conservatives are considering proposals to make competitiveness of financial services a statutory objective of the FSA to guard against the gold-plating of EU regulations and stick up for the industry’s interests internationally. Speaking at a Reform and City of London fringe event on Monday, Shadow Chancellor George Osborne said he was in discussions with […]
One of the supposed pleasures of being self-employed is that you can organise your own time, rather than stick to office hours. This week, I have plans to change my working week radically. I am going to start at 6.30am with the aim of clocking off at 2pm. This should allow me to power through my work first thing and log off after lunch when my brain slows like a computer with clogged-up memory.
The US equity arena has been the graveyard of many an aspiring fund manager. It is notoriously difficult to outperform the US equity market consistently – a fact to which many UK-based US equity managers can testify. The resulting shortage of supply often tempts US-based houses to come over to the UK to try and fill the gap.
Resolution Asset Management has appointed Gary McAleese as investment manager on its UK equities desk.McAleese has nine years investment experience and was previously at Aberdeen Asset Management where he was co-manager of the £475m Murray income trust since early 2005. He also ran the group’s Edinburgh managed fund between 2003 and 2005.Prior to that he […]
As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.
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